Prebaked anode prices in China to stay high despite aluminium capacity cut, A00 ingot prices drop across all markets

<p>Closures of illegal aluminium capacity in China in July is keeping the alumina prices in check as it may add nearly 170,000 tonnes of alumina to spot market per month in the short term.</p> <p>However, prices for prebaked anode, another raw material in aluminium smelting, set to continue rising next month adding to aluminium costs. &nbsp;According to SMM estimate, rise in prebaked anode price will be driven by rising prices of petroleum coke, which would be passed to prebaked anode prices in August.&nbsp;</p> <p>Currently, the raw material prices in China remain flat across all markets as shown in the below figure:</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/raw%20material%20china.png" alt="News" width="742" height="281" /></p> <p>Average prebaked anode price in the Northwest China Market remains the highest at RMB 4,200/t. The prebaked anode prices registered an increase in the first week of July.</p> <p>The latest aluminium capacity cut in China is not expected to impact prebaked anode demand in the market as of now.&nbsp; Supply of one of the key raw materials is expected to stay tight this year which will keep the prices high.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/chart%20(25).jpeg" alt="News" width="517" height="226" /></p> <p>The average prices for A00 Aluminium Ingot for all major Chinese markets (North, East, North-East and South-West) except South China market have registered a drop on July 26. In the South China market the average price of A00 ingot remains flat at RMB 14,380/t.</p> <p>{googleAdsense}</p> <p>As on July 26, average price for Aluminium Alloy (A380) in China remains flat at RMB 15,550/t. Aluminium Alloy (A356) price drops to RMB 15,000/t and is expected to move within a range of RMB 14,950- 15,050/t. &nbsp;</p> <p>&nbsp;</p>